MATERIALS FIRST AND FOREMOST

Wing Shing Enterprise Int'l Co Ltd

WITH
plans on track to launch a new 8,000-square-metre factory in Dongguan on the
Chinese mainland in 2001 or early 2002, "successful forever" - the
literal translation of Wing Shing - may be an apt name for Wing Shing Enterprise
Int'l Co Ltd.

The company's history began in 1983 with the creation of two enterprises: Shing
Hing Leather Fty and Wing Shing Metal & Leather Products Fty. Recently,
the two merged into a single entity featuring evening bags, fashion handbags
and wallets.

Monthly production stands at 10 million pieces, a figure that will surge when
the new factory hits its stride, according to Wing Shing director Pang Fong-chiu.
The company now occupies a 5,800-square-metre, 600-worker facility, also in
Dongguan.

Pang believes Wing Shing's background in metal and leather parts gives the company
an edge, enabling him to focus on materials. "I have always had an interest
in metal and leather, which is why I went into this business," he says.

All bags and wallets are designed by Pang, who creates 4-5 sets (each with 5-6
bags or wallets) per month. "Designing is the easy part," says Pang,
noting it takes 15 days to create a product from drawing board to completion.
"Sourcing raw materials is the real difficulty."

Wing Shing relies on local agents to source leather from Italy, South Korea
and Taiwan. PVC, PU and nylon come from Taiwan, the Chinese mainland and South
Korea, also via local agents.

Pang attends various trade shows, but few of his design ideas come from these
events. "I get my design ideas from looking around the streets and observing
people's fashions. Fashion changes constantly, so leather-goods designs must
do likewise," he says.

A typical handbag or wallet has a market life of only a few months. Few models
can survive on the market for more than a year.

Appealing to a wider range of buyers is part of Wing Shing's strategy. "The
market looks good, especially for fashion bags," Pang says.

The company's steady markets include Europe and the Middle East, but Wing
Shing products may soon enter Southeast Asia and Japan. Minimum order is 1,000
pieces. For items in stock, delivery takes 15 days.

YEAR OF THE JADE DRAGON

Jade Dragon Group Co Ltd

THE
Jade Dragon of Hong Kong's bags-and-leather-goods industry is intensifying
its focus on export marketing and design. "We would like to expand by
as much as 50% and hope to achieve this growth within 2-3 years," says
Jade Dragon Group Co Ltd managing director Chau Wai-tung.

Rather than adding new markets to its network of Europe, the US, Canada, Australia,
Japan, South Korea, Taiwan and the Chinese mainland, Jade Dragon aims to attract
a wider range of buyers within these existing markets.

In preparation for increased emphasis on export marketing, the company has consolidated
production capacity over the past two years. "Earlier, you could classify
our products under the 偤verage' category, but then we began making more complicated
models with enhanced workmanship and irregular shapes. Now design is our strength
and the reason we stay ahead of the competition," says Chau, who has spent
more than 20 years in the leather-goods industry.

Jade Dragon's range includes ladies' fashion handbags, men's bags, purses and
wallets. Most design work is done in Hong Kong, where each month a team of seven
in-house designers creates 300-500 bags and 200-300 purses and wallets. The
company's designs are sold under eight brand names, with Babila and Tipzag Young
being the most famous.

"In the past we followed overseas trends. Now our designers are confident
enough to create their own styles, and we give them room to develop," says
Chau.

This new confidence has resulted in more complex designs. "We devote special
attention to properly finished stitching on the straps, and we add large base
flaps to some of our handbags. Even with inexpensive materials, you can create
elegant products."

Chau says another reason Jade Dragon can turn out intricate designs is because
each designer focuses on a single aspect. One concentrates on colour combinations,
while others look at styling, cutting and materials.

The products are made from genuine leather, synthetic leather, PVC and PU, plus
less traditional materials like snake-skin and ostrich hide, both popular. The
materials come from Italy, South Korea, Taiwan or Japan.

"We source directly from Italy and South Korea, allowing us to trim manufacturing
costs while still producing complicated models and achieving our vision,"
says Chau.

That vision - to produce quality goods at reasonable prices in a sector flooded
by manufacturers vying to tempt buyers with low-priced products - inspired the
formation of the Jade Dragon Group in 1995, when chairman Alex Woo joined as
a partner. At the same time, Jade Dragon also entered the retail business in
Hong Kong.

The company operates a 100,000-square-foot factory, employing 1,500 workers,
in Dongguan on the Chinese mainland. Monthly capacity is 80,000 purses and wallets,
50,000 ladies' handbags and 20,000 men's bags. Minimum order is 300 pieces per
model, and delivery requires 45-60 days.

I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement (available at http://www.hktdc.com/mis/pps/en); I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.

(If you are from a member state of the European Union ("EU") / European Economic Area ("EEA")), PLEASE tick here if you accept our use of your provided data for direct marketing purposes.

*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.